Minister of Power, Adebayo Adelabu,has said the sector is facing an existential threat from a N4 trillion debt owed to electricity generation companies (GENCOs), a burden accumulated since 2015 that continues to undermine operational stability and investor confidence.
Adelabu, who issued the warning at a meeting between the President and the Association of Power Generation Companies (APGC) at the Presidential Villa, said without urgent liquidity support, the sector faced the real risk of generation shutdowns, which would cripple the economy and undo the hard-earned gains.
Adelabu appealed for partial debt defrayment to sustain operations while audit processes conclude, emphasising that the Tinubu administration’s reforms had already laid the groundwork for a self-sufficient power market.
Adelabu emphasised the need to address gas supply shortfalls, particularly in the Afam axis, where unpaid gas suppliers had constrained generation.
He described liquidity as the oxygen of the sector and proposed immediate solutions, such as unlocking 800 million cubic feet of gas through NLNG, to stabilise generation while long-term reforms take root.